This article is from the Australian Property Journal archive
SYDNEY-based specialist property funds manager Corval Partners has acquired the Australian Taxation Office Albury building for more than $48 million on a 8.0% yield, on behalf of former Multiplex boss Andrew Roberts.
CorVal Partners’ director Ian O’Toole told Property Review, that the property has been acquired for an Andrew Roberts controlled entity.
O’Toole said the property will sit alongside of the Coles Supermarket logistic Victorian headquarters CorVal Partners developed for Roberts.
“These two properties possess income yield through long lease to unquestionable covenants,” he said.
Purpose built by The Doma Group, the 520 Smollett St Albury property is a 7-storey commercial building comprising 10,786 sqm of net lettable area and includes 56 basement car and 82 bicycle spaces. It is leased to the ATO for 15 years, which accounts for 95% of the total lettable area. The balance of the building incorporates retail tenancies.
The property is centrally located within Albury’s retail precinct with Target, Coles and Kmart having a presence and a new 500 car council car park has recently been constructed adjacent.
CorVal Partners is half owned by former Multiplex boss Andrew Roberts and is run by former Multiplex directors Ian O’Toole and Rob Raynor.
CorVal Partners is looking to follow up on last year’s record of activity, which saw the group buy 369 Ann St Brisbane from Becton and Blackrock; the Australian Red Cross Building HQ at Alexandria Sydney from Andrew Roberts; and team up with the Future Fund in a $216.4 million acquisition of Waterfront Place in Brisbane from Stockland Capital Partners Limited.
The ATO transaction is the second major deal involving Corval Partners, which bought a B-grade office tower at 160 Ann St Brisbane for $75 million in October. Corval Partners is also looking at buying a 20-storey building at 9 Hunter St Sydney; a five-level B grade office at 75 George St Parramatta and another tower at 140 Arthur St North Sydney worth $150 million.
Colliers International’s Tim Mutton, Paul Powderly and Michael Heather brokered the sale of the ATO building.
Director of investments services and office leasing Tim Mutton said the sale was a strong result for a regional building.
Mutton said a pre-commitment by the ATO was a drawcard and interest for the property came from Australian and offshore investors in the United States, Singapore and New Zealand.
“The sale of the Albury ATO building confirms what we’ve been saying in the market place –there is a flight to quality and above all else the ability of an asset to attract secure long term cash flow is king.
“We sold every major office building that transacted in the Canberra market this year, all backed by Commonwealth leases.
“Our experience in major office building sales is that buyers are interested in the security of the Commonwealth lease covenant and want cash flow for more than 10 years,” he added.
Property Review
